There was a lot of action in the defense sector Friday afternoon. Just a few hours after reports surfaced that CIA chief David Petraeus resigned because of an extramarital affair, Lockheed Martinannounced CEO-elect Christopher Kubasik resigned due to a “close personal relationship with a subordinate employee.”

Kubasik was set to become Lockheed’s chief executive in January, replacing incumbent Robert Stevens. But an internal investigation revealed an improper relationship with a female employee, which led to the board asking and receiving Kubasik’s resignation immediately. The investigation was the result of an investigation completed by an outside independent firm, according to a spokesperson for Lockheed, after a third employee brought the issue to the company's ethics committee. Marillyn Hewson, executive vice president of Electronic Systems, will take his spot.

“While I am deeply disappointed and saddened by Chris’ actions, which have been inconsistent with our values and standards, our swift response to his improper conduct demonstrates our unyielding commitment to holding every employee accountable for their actions,” said Stevens, adding “we have a strong leadership team and a robust succession plan that allowed the board and me to react quickly and appropriately to this situation. Marillyn is an exceptional leader with impeccable credentials and deep knowledge of our business, customers, shareholders and employees.

With the defense industry at a crossroads in the aftermath of the Presidential election, awaiting resolution of the fiscal cliff and the future of their relationship with the government, the sudden move at Lockheed comes as a shock. Earlier on Friday, news of former General David Petraeus’ resignation also shocked the sector. Reports indicated the highly reputed General, and up until then CIA chief, tendered his resignation to President Obama citing an extramarital affair, according to NBC News.

Lockheed hasn't confirmed the exact nature of the "close personal relationship" Kubasik had with a subordinate employee, but he's hardly the first chief executive to lose his job for it. A few years ago, Hewlett-Packard chief Mark Hurd resigned after being accused of sexual harassment by former actress, reality-TV personality, and HP marketing consultant Jodie Fisher (the company found no merit in the accusations, but Hurd was forced to resign after disputes with the board that ensued). And in 2012, Best Buy founder and chairman Richard Schulze was forced to quit, accused of covering up an affair between former CEO Brian Dunn and a young, female employee.

Kubasik was Lockheed's vice chairman and chief operating officer. His departure sparked selling initially, but by 5:25 PM the stock had recovered and was marginally in positive territory. Big defense names including Honeywell, Raytheon, Boeing, and Lockheed suffered solid declines a few days ago as President Obama secured re-election. The specter of the fiscal cliff, which hits the defense industry with harsh spending cuts, has investors on the edge of their seats. Judging by the stock's reaction, the departure of Kubasik, though, doesn't seem to have changed investors' perception of Lockheed's business all that much.